Dana Haynes, Hales' spokesman, said the mayor
sees three options: The lot remains undeveloped for "the foreseeable future";
another developer or retailer sees a business opportunity and strikes a deal;
or Trader Joe's and Majestic reopen negotiations with the city.

Haynes admitted that the third possibility
"doesn't look good" but said the city isn't ruling it out. "If we weren't
optimistic, we wouldn't be in government," Haynes said.

Majestic officials said Monday they've "decided
to take a time out" on the Northeast Portland plan, to allow the community
dialogue to take shape. Trader Joe's officials declined additional requests to
comment on its plans for Northeast Portland.

Majestic, the California-based developer, had planned on
building the $8 million Trader Joe's on a nearly 2-acre parcel at the corner of
Northeast Alberta Street and Northeast Martin Luther King Jr. Boulevard. But
the company said Monday it would not move forward with the deal, citing
"negative reaction from the community." The project included plans for
an additional four to 10 retailers.

On Nov. 13, the PDC Board of Commissioners authorized an
agreement to sell the property to Majestic for $502,160. On Dec. 16, the Portland African American
Forum issued a press release denouncing PDC's decision-making behind the project, saying it contributes to gentrification,
the harshest criticism brought against the project.

The project fell behind its planned timetable from when the
Portland Development Commission's board signed off on the land and development
deal with Majestic to Monday's unexpected announcement by Trader Joe's.

According to city documents, Majestic and PDC planned to ink
a development agreement by Nov. 23. Majestic was expected to have a lease
agreement with Trader Joe's in hand by Dec. 15. Both dates slid by without
agreements in hand.

Shawn Uhlman, PDC's spokesman, said all development projects
are different and proceed on different timelines. He said the development agreement and
Majestic's efforts to engage and work with the community were proceeding on
"parallel tracks." Majestic and PDC officials could agree to extend those
deadlines at any point.

Because Majestic hadn't signed an agreement with the city, the company
also didn't put down any earnest money, a nonrefundable payment the buyer makes
in many real-estate transactions to indicate strong interest in a development.

The Trader Joe's announcement Monday seemed to catch city officials
off-guard. In an email, Uhlman said the development commission wasn't aware of
the company's plans prior to the announcement.

The change wasn't completely unexpected, however. Last week,
Majestic officials "expressed their concerns about the project's viability,"
Uhlman said, given the community feedback.

When asked where PDC goes from here, Uhlman said, "Great question."
He said he believed PDC Executive Director Patrick Quinton had since been in
touch with Majestic officials. Calls to Majestic weren't immediately returned
Tuesday.

Haynes, the mayor's spokesman, said the situation reached a
point where Hales became involved and called Trader Joe's officials midway
through last week.

In the wake of Monday's news, Haynes said the mayor's office
has "heard from lots of people" from Northeast Portland. That feedback, Haynes
was careful to say, came from "a wide diversity of opinions."

"The mayor really hopes that's clear," Haynes said. "There
was not one voice" speaking unanimously in favor of or in opposition to the $8
million project.